PERTH (miningweekly.com) – The newly elected Queensland government on Wednesday announced that it had reached an agreement with major project proponents Adani and GVK to expand the Abbot Point coal terminal.

Premier Annastacia Palaszczuk said that the new agreement would see dredge spoil dumped on land on the site known as T2, adjacent to the existing coal terminal, not on the Caley Valley wetlands or within the Great Barrier Reef World Heritage Area.

“I’ve always said I support the responsible and sustainable development of the Galilee basin and Abbot Point, and the agreement we’ve reached demonstrates that,” Palaszczuk said.

The new plan would replace the previous government’s Abbot Point port and wetland strategy, which involved using the dredging material to enhance the existing port land. Palaszczuk noted that the state government would withdraw the applications for the current plan.

State Development Minister Dr Anthony Lynham said unlike the previous government’s project, taxpayers would not fund capital dredging costs.

“We will ensure that approvals costs will be met by Galilee basin proponents, with capital dredging costs to be paid for by the proponents to the Galilee basin projects.”

Lynham said the new project referral under the federal Environment Protection and Biodiversity Conservation Act would involve a full environmental impact statement process, which also allowed for a new round of public consultation.

“The Port of Abbot Point development is vital to Queensland’s economic future. That’s why we are prioritising this project and are dedicated to ensuring it progresses in a transparent and environmentally responsible manner," he said.

“We will immediately begin work on providing a robust and informed approval referral to the commonwealth government and applications to state approval agencies.”

Project proponent GVK on Wednesday expressed its commitment to funding the environment approvals for the new dredging plan, welcoming the government’s actions to facilitate the process, and saying it gave the proponents a clear line of sight to the end of an approvals process.

“The development of the Galilee basin represents one of the most significant ... regional and economic developments our state has seen for decades and easily the most significant job creator on Queensland’s economic horizon,” the company said.

The Queensland Resources Council (QRC) on Wednesday also welcomed the government’s announcement, with CEO Michael Roche saying that the advancement of the Abbot Point expansion was another positive step forward to open up the Galilee basin, which would benefit the state and the nation.

“The proponents of the Abbot Point port development, in addition to current or future port proponents along the Queensland coast, would take comfort in the government's positive approach to balancing industrial development and environmental protection that is important to our state’s economy and to the health of the Great Barrier Reef,” Roche said.